al LAerBrises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. The weighted average cost of capita 13.0%, and the FCFS are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. Year 1 FCF -%2415.0 $10.0 $25.0 O a. $217.75 Ob. $239.29 OC $196.22 O d. $272.79 O e. $268.01

Essentials Of Investments
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Chapter1: Investments: Background And Issues
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Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. The weighted average cost of capital is
13.0%, and the FCFS are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round
intermediate calculations.
Year
2
3
FCF
-$15.0
$10.0
$25.0
O a. $217.75
O b. $239.29
OC.$196.22
O d. $272.79
O e. $268.01
Transcribed Image Text:Ryan Enterprises forecasts the free cash flows (in millions) shown below. Assume the firm has zero non-operating assets. The weighted average cost of capital is 13.0%, and the FCFS are expected to continue growing at a 5.0% rate after Year 3. What is the firm's total corporate value (in millions)? Do not round intermediate calculations. Year 2 3 FCF -$15.0 $10.0 $25.0 O a. $217.75 O b. $239.29 OC.$196.22 O d. $272.79 O e. $268.01
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the firms corporate value is equal to present value of the free cash flows

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